From Milestones to Moonshots: Palantir's Trailblazing Financial Journey
Charting a Course of Profitable Growth and Innovative Breakthroughs in the Tech Frontier
Financial Performance and Growth
Fiscal Responsibility and Profitability Milestones
Q4 2022: Palantir reached a pivotal moment, attaining GAAP profitability for the first time, a significant achievement that underscored the company's commitment to fiscal discipline. This period not only demonstrated an 18% year-over-year revenue growth to $509 million but also showcased a strong cash flow, with $79 million generated from operations, contributing to a full-year revenue of $1.91 billion—a 24% growth compared to the prior year.
Q1-Q4 2023: Throughout 2023, Palantir continued to build on this financial foundation, consistently reporting profitability and revenue growth. Each quarter reflected the company's strategic foresight and operational efficiency, with revenue increasing from $525 million in Q1 to $608 million in Q4. The sequential and year-over-year growth rates highlighted not only the success of their commercial and government engagements but also the scalability and adaptability of their software solutions in diverse market conditions.
Next Quarter Estimates:
Ratios:
Market Data:
52 Week High: $22.18
52 Week Low: $7.19
Avg. 3 Month Volume: 62.52 MM
5 Yr Beta: 2.66
Short Interest: 4.7%
Efficiency:
LTM Gross Margin: 80.6%
LTM EBIT Margin: 5.4%
LTM ROA: 1.9%
LTM ROE: 7.0%
LTM ROIC: 3.2%
Valuation:
Street Target Price: $17.81
NTM EV/Revenues: 16.56x
NTM EV/EBITDA: 51.30x
NTM P/E: 67.60x
NTM MC/FCF: 54.88x
LTM EV/Revenues: 19.88x
Capital Structure:
Market Cap (MM): $47,588.89
Enterprise Value (MM): $44,229.50
Shares Outstanding (MM): 2,175.99
LTM Net Debt (MM): ($3,444.79)
LTM Net Debt/EBITDA: (16.72x)
Growth:
Fwd 2-Yr Rev. CAGR: 20.2%
Fwd 2-Yr EBITDA CAGR: 26.0%
Fwd 2-Yr EPS CAGR: 24.5%
Last 3-Yr Rev. CAGR: 26.7%
Last 3-Yr EBITDA CAGR: 48.4%
Last 3-Yr EPS CAGR: 10.3%
Valuation :
LTM EV/Gross Profit: 24.66x
LTM P/E: 23.00x
LTM P/BV: 13.76x
LTM P/NCAV: 16.25x
Return Ratios:
Return on Assets: 3.8%
Return on Capital: 6.9%
Return On Equity: 11.3%
Return on Common Equity: 11.2%
Margin Analysis:
Gross Profit Margin: 82.1%
SG&A Margin: 53.4%
EBITDA Margin: 12.1%
EBITA Margin: 10.8%
EBIT Margin: 10.8%
Income From Continuing Operations Margin: 15.9%
Net Income Margin: 15.4%
Normalized Net Income Margin: 10.3%
Net Avail. For Common Margin: 15.4%
Levered Free Cash Flow Margin: 48.2%
Unlevered Free Cash Flow Margin: 48.2%
Asset Turnover:
Asset Turnover: 0.54x
Fixed Assets Turnover: 13.03x
Receivables Turnover: 6.12x
Working Capital Turnover: 0.72x
Short Term Liquidity:
Current Ratio: 5.55x
Quick Ratio: 5.41x
Op Cash Flow to Current Liab: 1.61x
Avg. Days Sales Outstanding: 60.12
Avg. Days Payable Outstanding: 9.14
Long-Term Solvency:
Total Debt / Equity: 6.4%
Total Debt / Capital: 6.1%
Total Liabilities / Total Assets: 21.3%
EBIT / Interest Expense: 483.78x
EBITDA / Interest Expense: 639.34x
(EBITDA - Capex) / Interest Expense: 603.60x
FFO Interest Coverage: 2,214.50x
FFO to Total Debt (x): 5.25x
Strategic Initiatives and Product Innovation
Artificial Intelligence Platform (AIP) and Large Language Models (LLMs)
The launch and expansion of AIP and the integration with LLMs and Foundry were central to Palantir's strategy. These initiatives not only expanded Palantir's addressable market but also played a critical role in driving customer engagement and operational efficiency. The execution of over 560 AIP boot camps across 465 organizations far exceeded initial targets and illustrated the company's proactive approach to market penetration and customer education.
Continuous Product Evolution
Product innovation remained a constant focus, with significant updates like Foundry 23 and enhancements across Palantir's suite, including Apollo. These developments were not just technical achievements but strategic moves to embed Palantir's solutions deeply within client operations, ensuring that the company's offerings remained at the forefront of technological advancement and operational necessity.
Commercial and Government Business Expansion
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